Federal Grants
Federal Pell Grant
A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or a professional degree. Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and nonfederal sources might be added. There are limits on the maximum amount you are eligible to receive each academic year and in total (aggregate Pell Grant limit).
Eligibility
The Estimated Family Contribution calculated by the FAFSA determines if the student is Pell-eligible and the amount the student is entitled to. To qualify for a Pell grant, the office of financial aid must receive a valid FAFSA while the student is enrolled. If the FAFSA is received after the semester is over, the Pell grant awarded must be based upon completed credits.
Effective with the Fall 2012 semester, students are now limited to 12 semesters (600%) of Pell Grant eligibility during their lifetime. In December 2011, President Obama signed into law the Consolidated Appropriations Act, 2012 (Public Law 112-74). This law has significantly impacted the Pell Grant Program. Beginning in Fall 2012, Students are now limited to 12 semesters (or 600%) of Pell Grant eligibility during their lifetime. This change affects all students regardless of when or where they received their first Pell Grant.
How do I know if this affects me?
If you have attended college for 4 years or longer, receiving the Pell Grant each year as a full-time student, you are likely to exhaust or have already exhausted your lifetime limit of 12 semesters of Pell Grant eligibility. If you have attended college and received the Pell Grant for 4 years or less, you will likely not surpass the lifetime limit. Whether you have used all of your Pell Grant eligibility or only half, please be conscious about the lifetime limit of the Pell Grant when changing majors and/or scheduling classes.
How is the percentage used calculated?
The percentages are based off the annual award at full-time enrollment status. For students with an annual award for the 2014–15 academic year, at the maximum award of $5,730 who attend 12 or more credits per semester in two semesters (Fall and Spring for example), the percentage used for the 2014–15 academic year is 100%. If you only attend as a part-time student, your percentage used will be prorated.
How will I be notified?
Beginning in mid-April 2012, the Department of Education sent emails to all FAFSA applicants who appeared to qualify for a federal Pell Grant and who reached 450 % of their Lifetime Eligibility Used Pell Grant.
Examples
| # of Financial Aid Eligible Credits Enrolled (% of Annual Pell) | |||
|---|---|---|---|
| Summer | Fall | Spring | Total |
| 0 | 12 (50%) | 13 (50%) | 100% |
| 0 | 6 (25%) | 7 (25%) | 50% |
| 6 (25%) | 12 (50%) | 8 (25%) | 100% |
| 8 (25%) | 6 (25%) | 7 (25%) | 75% |
| 0 | 9 (37.5%) | 9 (37.5%) | 75% |
| 6 (25 %) | 9 (37.5%) | 9 (37.5%) | 100% |
| Total Pell After 6 Years = 500% | |||
Student has remaining Pell eligibility for future semesters.
Questions?
Our financial aid counselors are available to discuss the change in the lifetime Pell Grant eligibility with you. Please call us at 410-532-5369 or e-mail finaid@ndm.edu.